APRA Information Paper: Modernising the prudential architecture

APRA has released an information paper for a multi-year program to modernise the architecture of prudential standards and guidance for banks, insurers and superannuation funds. Key focus points:

• better regulation, improving the design of the framework to ensure the prudential standards and guidance are easier to navigate, understand and implement;
• a digital first approach, exploring how to make use of suptech (supervisory technology) and regtech (regulatory technology) to support better regulation; and
• new risks, new rules, developing APRA’s approach to the regulation of new risks, and new business models on the prudential perimeter.

“With 140 prudential standards and prudential practice guides now covering the five APRA-regulated industries – as well as letters, information papers and FAQs – the framework has become more complex, and in turn more challenging for entities to follow.” 

APRA Chair Wayne Byres: “With 140 prudential standards and prudential practice guides now covering the five APRA-regulated industries – as well as letters, information papers and FAQs – the framework has become more complex, and in turn more challenging for entities to follow.”

“These include the advent of crypto-assets and digital ledger technology, the financial risks associated with climate change, and the increasingly prevalent risks associated with cyber security.

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APRAPrudential Architecture